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??? Required information Eisner Company has an opportunity to manufacture and sell a new product for a five-year period. The company estimated the following costs
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Required information Eisner Company has an opportunity to manufacture and sell a new product for a five-year period. The company estimated the following costs and revenues for the new product: Annual revenues and costs: When the project concludes in five years the working capital will be released for investment elsewhere in the company. Click here to download the Excel template, which you will use to answer the guestions that follow Click here for a brief tutorial on Goal Seek in Excel In the Excel template, using Goal Seck, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it likely to accept or reject the investment? Why? What is the project's net present value when using a discount rate of 18% ? If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed ut-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant or all five years, therefore modifying cell C13 automatically updates cells D13 through G13. . If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase. ecrease, or stay the same? No computations are necessary to answer this question. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from 90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $,200,000). 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase: decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $/200,000). Complete this question by entering your answers in the tabs below. Using Microsoft Excel Goal Stik, calculate the investment's internal rate of return. 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. Would the company be likely to accept or reject this investment? 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. 4. What is the project's net present value when using a discount rate of 18% ? 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achleve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for alf five years, therefore modifying cell C13 automatically updates cells D13 through Gi3. 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $200,000). Complete this question by entering your answers in the tabs below. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achleve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to retum the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of ($200,000). Required information Eisner Company has an opportunity to manufacture and sell a new product for a five-year period. The company estimated the following costs and revenues for the new product: Annual revenues and costs: When the project concludes in five years the working capital will be released for investment elsewhere in the company. Click here to download the Excel template, which you will use to answer the guestions that follow Click here for a brief tutorial on Goal Seek in Excel In the Excel template, using Goal Seck, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it likely to accept or reject the investment? Why? What is the project's net present value when using a discount rate of 18% ? If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed ut-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant or all five years, therefore modifying cell C13 automatically updates cells D13 through G13. . If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase. ecrease, or stay the same? No computations are necessary to answer this question. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from 90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $,200,000). 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase: decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $/200,000). Complete this question by entering your answers in the tabs below. Using Microsoft Excel Goal Stik, calculate the investment's internal rate of return. 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. Would the company be likely to accept or reject this investment? 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. 4. What is the project's net present value when using a discount rate of 18% ? 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achleve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for alf five years, therefore modifying cell C13 automatically updates cells D13 through Gi3. 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achieve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of $200,000). Complete this question by entering your answers in the tabs below. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? 3. In the Excel template, using Goal Seek, calculate this investment's internal rate of return. If the company's hurdle rate is 18% would it be likely to accept or reject the investment? Why? 4. What is the project's net present value when using a discount rate of 18% ? 5. If the company wants to achleve an 18% return on this investment, what is the maximum amount that it can spend each year on fixed out-of-pocket operating costs? Use Goal Seek to compute your answer. Note: The fixed out-of-pocket operating costs remain constant for all five years, therefore modifying cell C13 automatically updates cells D13 through G13. 6. If the investment in working capital increased from $90,000 to $110,000 would you expect the internal rate of return to increase, decrease, or stay the same? No computations are necessary to answer this question. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to retum the fixed out-of-pocket operating costs to the original value of $(200,000). Complete this question by entering your answers in the tabs below. 7. Refer to the original data. Using Goal Seek, calculate the internal rate of return if the investment in working capital increases from $90,000 to $110,000. Note: Be sure to return the fixed out-of-pocket operating costs to the original value of ($200,000) Step by Step Solution
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